I. Outline (Role of SIC)
SIC protects depositors in agricultural and fishery cooperatives
The aim of Agricultural and Fishery Co-operative Savings Insurance Corporation (hereinafter “SIC”) is to protect depositors in agricultural and fishery cooperatives (hereinafter “AFCs”) and to ensure transaction related to AFCs in business difficulty, in order to contribute to maintenance of an orderly financial system.
AFCs are comprehensive entities which operate marketing business and insurance other than credit business, which largely differentiates them from other general financial institutions such as banks. Therefore, SIC has been established separately from Deposit Insurance Corporation of Japan.
When AFCs fail, the precious assets of depositors are possibly endangered because it takes a long time to complete the clearing procedures and to get repayment of savings, and the protective measures may not be sufficient. Therefore, SIC is aimed at protecting depositors with systems to pay insurance to depositors and to purchase receivables such as savings as a means of precaution.
Another method to protect depositors is to provide financial assistance required for disposition of deficit to cooperatives which help cooperatives faced with business difficulty by means of mergers and assignments of credit businesses, for the purpose of prevention of insurable contingencies due to failure of AFCs.
Moreover, SIC maintains and strengthens the financial functions of AFCs in the areas affected by the Great East Japan Earthquake, and reinforces capital bases (preferred equity investment and subordinated loan) of disaster-affected AFCs to offer a secure feeling to depositors.
As just described, in collaboration with the institutions concerned, SIC plays a role as a safety net for AFCs in order to protect depositors and maintain an orderly financial system.